SOWG

Sow Good is no longer an operating business in any meaningful sense. On December 30, 2025 it sold substantially all of its manufacturing assets — six freeze-drying machines and equipment with ~$10M net book value — to Trea Grove, LLC, a *related party*, for just $1.5M, and exited its facility lease the next day. What remains is a capital-light distribution arrangement where the company collects only 10% of gross receipts on its leftover inventory, and only through July 31, 2026. The MD&A states management 'no longer operates manufacturing facilities' and is 'evaluating strategic alternatives' — and the freeze-dried candy category that drove its entire 2023–2025 story is, in the company's own words, showing 'a significant decline in sales toward the end of 2025.' The product story is over.

The numbers confirm a balance sheet in collapse. FY2025 revenue was $0.00 (down from $16.1M in FY2023), net loss was -$40.6M, stockholders' equity is *negative* at -$2.56M (liabilities/equity of -2.47x), and accumulated deficit reached -$103M. Total assets fell 93% to $3.78M against $6.34M of liabilities, with only $1.47M of cash and -$4.31M of operating cash flow — the firm is insolvent on a book basis and burning what little cash it has. There is no profitability, no revenue, no margin trend to reward, and no equity cushion to fall back on.